Relationships key to longevity
After 40 years in the building game, George Allingame doesn’t get fazed by economic cycles.
Mr Allingame's construction company, Pindan, was established in 1977 and now ranks among the state’s top five residential builders, and the top 20 nationwide.
In commercial construction, Pindan is ranked the 35th largest builder in Australia.
However, Mr Allingame said Pindan was a vastly different-looking company when it was established.
“There were only two of us when it started, so it’s a fair bit different now,” Mr Allingame told Business News.
“It’s just a gradual progression really; the jobs have gotten bigger and as we’ve gotten more jobs we’ve branched out into other areas.
“We’ve sort of grown organically.”
That organic growth has resulted in the establishment of 10 different operating divisions at Pindan, ranging from small to medium construction, contracting, asset management, modular building, property funds management, project marketing and sales, as well as design and construct services.
Mr Allingame said the full suite of services was paramount to the company’s longevity.
“We try and give our clients the best of the whole suite of project services, we manage the whole lot for them,” he said.
“Our strategy really is to add value for clients in terms of early contractor involvement and all those sorts of things, and through development management we find deals that people are happy to work them up.
Part of Pindan’s success, Mr Allingame said, was recognising the state of the market and acting accordingly.
In recent months, Pindan has placed three projects on hold because of difficult conditions in the multi-residential market – one in East Perth, another in Bayswater and a third in North Fremantle.
“People who get hurt in busts are the ones who come in later,” Mr Allingame said.
“Lots of builders don’t actually make a lot of money during booms because it’s difficult to get things done on time and that sort of stuff, so it’s better to have a bit steadier market like we’ve had.”
Mr Allingame said Pindan’s next phase of growth would be largely driven by a partnership with Singaporean development giant Oxley Holdings.
Late last year, Oxley paid $72 million for a 40 per cent stake in Pindan, representing a major restructuring of the group.
Mr Allingame said the partnership would give Pindan the financial strength to become a significant national player.
Pindan’s growth during the past 40 years has to a large degree been mirrored by that of Osborne Park-based Georgiou Group.
Source: Business News
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